Khalid, Dina, and James Are Partners with Beginning-Of-Year Capital Balances

question 38

Essay

Khalid, Dina, and James are partners with beginning-of-year capital balances of $400,000, $320,000, and $160,000, respectively. The partners agreed to share income and loss as follows: Salary of $30,000 to Khalid, $50,000 to Dina, and $55,000 to James. An interest allowance of 10% on beginning-of-year capital balances. Any remaining balance is to be divided equally. If partnership net income for the year is $190,000, determine each partner's share and make the appropriate journal entry to close the Income Summary to the capital accounts.

---

Definitions:

Intrinsic Pathway

A series of steps in blood coagulation that is initiated by internal trauma, leading to the activation of Factor X independent of tissue factor.

Extrinsic Pathway

A pathway for blood coagulation that is initiated by external trauma leading to blood escaping from the vascular system.

Clot Retraction

Condensation of a clot into a denser, compact structure; caused by the elastic nature of fibrin.

Clot Dissolution

The process of breaking down a clot, typically through the action of certain enzymes like plasmin.